A joint venture (JV) between UOL Group and Singapore Land Group has emerged as the buyer of Watten Estate Condominium, which is located on Shelford Road in the Bukit Timah area.
UOL Group and Singapore Land Group won the site with a bid of $550.8 million.
The bid was accepted by the members of the sale committee on Oct 27.
Of the total consideration, 5% (including the tender fee) will be paid within seven business days from the award of the tender. Another 5% will be paid within seven business days from the notice of receipt of sale approval, while the remaining 90% will be paid upon legal completion.
According to UOL Group and Singapore Land Group, the consideration will be financed primarily from bank borrowings and internal resources.
The 80:20 joint venture company, named United Venture Development (No. 4) or UVD4, is formed by UOL Venture Investments, a wholly-owned subsidiary of UOL Group and Singland Residential Development, a wholly-owned subsidiary of Singapore Land Group.
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Under the JV, UOL Venture has 40 ordinary shares at $1 apiece, representing an 80% interest, while Singapore Land Group is interested in 10 ordinary shares, or a 20% interest in the JV.
The JV was incorporated in Singapore on Dec 3, 2012.
In connection with the acquisition, both companies will enter into an agreement to formalise the terms of the JV.
The agreement will see that each shareholder will be entitled to nominate directors to UVD4’s board. The parties will also undertake to provide sufficient funds to enable the completion of the acquisition.
The JV is considered an interested person transaction, under the terms set out in the SGX listing manual.
Wee Cho Yaw is the chairman, director and controlling shareholder of SingLand and UOL. Wee Ee Lim, who is the son of Wee Cho Yaw, is a director of SingLand and the deputy chairman and a director of UOL. Liam Wee Sin is a director of SingLand and UOL and the group CEO of UOL.
The total value of all transactions year-to-date for the current FY entered into with UOL is approximately $382.1 million.
Watten Estate Condominium sits on an elevated freehold site measuring 220,241 sq ft. It is zoned for residential purposes and has a gross plot ratio (GPR) of 1.4 according to the Urban Redevelopment Authority’s (URA) 2019 Master Plan.
It was built in 1983 and comprises 104 units made up of townhouses and apartments.
The condo was first put up for en bloc sale in July 2019 at a price of $536 million.
In September, the condo was put up again for collective sale via tender with a minimum price of $500 million.
Jesline Goh, chief investment and asset officer at UOL Group Limited called the acquisition a "timely replenishment for UOL Group as most of our projects are substantially sold".
"The prime freehold site is located in the exclusive residential enclave at Watten Rise, which is within 1km of two prestigious primary schools, Nanyang Primary and Raffles Girls’ Primary schools. Leveraging our product DNA and experience in developing luxury collection projects like Meyer House, a high-end project which saw healthy take-up with all of its six penthouses sold, we plan to develop another luxury project with about 200 larger format units on elevated ground," she added.
Shares in UOL Group and Singapore Land Group closed at $7.33 and $2.70 respectively on Oct 27.
Photo: Samuel Isaac Chua/The Edge Singapore
